At least two terror suspects have been gunned by security forces in an encounter in Shadnagar district of the Indian state of Telangana on Monday.

It is reported that the local police raided a house in the Millennium Township area of the district.

Naeem, a "most wanted" gangster in Andhra Pradesh and Telangana, is among those who have been gunned down.

Heavy security has been deployed in the area and the operation is currently underway. Meanwhile, minister of state for home affairs Kiren Rijiju said it is a serious matter that the security forces are engaging with the militants.

"We should not speak anything or speculate when an incident is going on," he said in the national capital, Delhi.